FFRI Security, Inc.
3692・Growth Market・Information & Communication
Business
FFRI Security is a purely Japanese cybersecurity R&D company founded in 2007. Built on advanced technical capabilities in security vulnerabilities, malware, IoT, and embedded devices, it primarily offers security products such as the targeted-attack countermeasure product series "FFRI yarai" alongside National Security Services aimed at government agencies and the defense industry. The company is characterized by seeds-type R&D, presenting research findings at international conferences such as Black Hat, and its main customers include government agencies, critical infrastructure operators, and defense-related organizations. It also engages in security talent development through N Laboratories, a joint venture with NTT DOCOMO Business.
Business Model
Revenue is composed of three segments: "Security Products," "National Security Services," and "Other Security Services." Products are sold via subscription and perpetual licenses, combining indirect sales through OEMs and sales partners with direct sales. Services are centered on contracted work such as research, analysis, and training for government agencies and the defense industry, and the company maintains a high utilization rate by continuously securing orders for national projects such as the Program for Promoting Advanced and Emerging Economic Security Technologies. Against net sales of ¥4,349 million in FY2026 (ending March 2026), the company achieved an operating profit of ¥1,364 million and an operating profit margin of 31.4%.
Company Strengths
The company has one of the very few domestic frameworks conducting R&D from core cybersecurity technology, and continuously produces internationally recognized research achievements, including presentations at Black Hat USA 2025 on macOS security mechanism analysis and a proof-of-concept for Shade BIOS. This accumulated technology underpins the higher value-added nature of its products and services and supports the trust it has earned from government agencies.
The company discloses the Cyber Research Consortium (a general incorporated association, 25.5% of net sales), NEC Corporation (15.8%), and the Cabinet Secretariat (11.5%) as major customers, and has an ongoing track record of transactions with government and defense-related organizations. It has received orders across multiple fiscal periods for projects related to the Economic Security Key Technology Development Program, establishing a position in the security domain, which has high barriers to entry.
For FY2026 (ending March 2026), the company recorded operating profit of ¥1,364 million (operating margin of 31.4%) against net sales of ¥4,349 million. While selling, general and administrative expenses were kept to a 5.2% year-on-year increase, net sales grew 43.1%, resulting in a pronounced operating leverage effect from the sales expansion. The company operates debt-free and holds cash and cash equivalents of ¥3,334 million, maintaining a solid financial foundation.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), the company achieved its fifth consecutive year of increased revenue and profit, with revenue of ¥4,349 million (up 43.1% year on year), operating profit of ¥1,364 million (up 67.0%), and net income of ¥1,100 million (up 60.1%). The operating margin improved 4.5 percentage points, from 26.9% to 31.4%. As an external factor, the intensification of domestic cyberattacks (ransomware, DDoS, phishing, etc.) and the strengthening of the government's cyber security policy drove rapid demand expansion. By segment, National Security Services (up 66.9% year on year) and Other Security Services (up 52.3%) led growth. The forecast for FY2027 (ending March 2027) calls for continued growth, with revenue of ¥5,135 million (up 18.1% year on year) and operating profit of ¥1,452 million (up 6.5%), though the profit growth rate is expected to decelerate.
Growth Strategy
Mid-term growth will be achieved through the dual pillars of capturing National Security demand and expanding sales channels for domestically-developed products
Continue to secure orders related to the Economic Security Critical Technology Development Program and cyber security-related research, analysis, and education projects. Targeting the FY2027 (ending March 2027) plan of ¥2,159 million (up 37.0% year on year) in National Security Services revenue, the company aims to expand orders on the back of the government's accelerating enhancement of cyber defense capabilities.
Continue to expand sales through strengthened collaboration with strategic sales partners and OEM sales. Leveraging the strengths of a fully domestically-developed product, the company will enhance sales initiatives targeting government agencies, critical infrastructure companies, local governments, and healthcare-related organizations, while promoting activities to acquire new strategic sales partners. FY2027 (ending March 2027) plan calls for ¥1,767 million (up 0.6% year on year) in security product revenue.
FFRI Security Works Co., Ltd. was established as a new consolidated subsidiary during FY2026 (ending March 2026). The company aims to strengthen its human resources and organizational foundation to respond to rapidly expanding cyber security demand, laying the groundwork for medium- to long-term business expansion.
NF Laboratories, a joint venture with NTT DOCOMO BUSINESS, captured increasing demand related to security education and training, recording equity in earnings of affiliates of ¥74 million (up 70.2% year on year) in FY2026 (ending March 2026). Further demand expansion is expected going forward.
Last updated: July 19, 2026